LG G6 Saw Lacklustre Sales Last Quarter, LG Reveals

LG Electronics Inc on Thursday said continued losses in its mobile unit limited growth in second-quarter profit to 13.6 percent, as the firm prepares to release a handset in the third quarter that it hopes will turn the tide.

The South Korean firm said operating profit reached KRW 664 billion ($597 million or roughly Rs. 3,828 crores) in April-June, in line with its estimate earlier in July. Revenue rose 3.9 percent to KRW 14.6 trillion, also in line with its estimate.

“We will strengthen our market dominance through expanding our premium home appliance lineup in the third quarter,” it said in an earnings statement.

LG’s earnings will likely fall in the second half of 2017 compared with the first as its appliances business enters a traditional off-season, analysts said. On-year growth is still likely, however, as LG continues to boost sales of high-end home appliances and TV products with wider profit margins, they said.

But views are divided on whether the mobile division can narrow losses with a high-end handset debuting in late August.

“We believe the smartphone business needs a fundamental change in strategy,” analyst John Park at Daishin Securities wrote in a research note.